China is costing Apple $500 billion and counting

#322: Apple will also spend $500 billion over the next four to dodge tariffs and build US factories to support the MAGA movement...

America’s trade war with China is costing Apple $10 million-a-day as CEO Tim Cook rushes to tear up the 25-year-old supply lines he built inside the Bamboo Curtain.

Cook told analysts on an earnings call this week that shifting production of US iPhones to India had already cost an eye-watering $900 million in 91 days.

And he revealed Apple would be backing the MAGA movement by spending a colossal $500 billion over the next four years on building US factories and production.

“We are proud to increase our impact here in the United States,” he said.

That massive investment will weigh heavily on America’s most valuable stock, which is facing antitrust hearings, a worrying slowdown in iPhone sales, and losing on AI.

And yesterday, one of its execs was referred to face criminal contempt charges for lying under oath.

Overall, Apple reported a modest five per rise in YOY earnings for the quarter to $95.4 billion, bolstered by record earnings from its services and app store.

The breakdown is that Tin Man Cook’s revenues are flattening while his costs are soaring.

That was always coming, as I reported back in January. Now it’s here and the costs are mind-blowing…

Apple's China shift is putting trillions in the crosshairs

And we haven’t even gotten to the timebomb of Taiwan, which is where all iPhone chips are made today.

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As you read this, I’m munching canapés on a Qatar Airways A380 en route to London to speak at the Professional Publishers Association Festival.

I’ll be joining my Scotch and Watch podcast co-host

Chris Duncan

and Condé Nast VP Sarah Marshall to debate breaking the Big Tech monopoly.

I guarantee that it’ll be more fun than running Apple, because that looks like a sh*t sandwich right now…